Times are tough. Economies unstable, and companies are getting worried. How should companies act in the face of these circumstances? For many, the first reaction is to simply bring out the axe and begin cutting people. Cost cut, and do it yesterday.

But is cutting your people the best strategy? Perhaps if you’re only looking at your budget to inform your decisions. Salaries and benefits are expensive -and truly in these difficult times, it’s important to make sure you have the right people in your company or “on your bus ” to begin with (to borrow from Good to Great) . But is cutting them out to save money the best long term strategy?

A few weeks ago…perhaps almost a month ago – I listened to an HBR Ideacast about how Singapore Airlines are dealing with their industry’s tough times. Instead of following the other airlines in cost cutting and service rollbacks, they have gone in the opposite direction – investing deeply in providing an excellent client experience. This involves heavy and ongoing training of staff, investing in the best aircraft, all in the face of terrible times for the airlines. Their results have been growth and customer loyalty – despite their cost.

I just came across this blog post: Why Your Company Should treat Employees like Family

Same story. Instead of following the pack, this company has decided to focus on what they’ve always done: protect their people. (Important: valuing its people has been an ongoing trajectory for this company.) And I think that’s why the strategy is working in the face of the current crisis. They developed trust, and a safe place to work, where people know they’ll be protected. The great results can only be expected….so why is it so hard for companies to take on this mindset? Protect your people, and your bottom line will eventually take care of itself.